Mondee Is Leveraging AI-Powered Platform And M&A To Expand And Diversify: Analyst

JMP Securities analyst Nicholas Jones reiterated a Market Outperform rating on the shares of Mondee Holdings Inc MOND with a price target of $13.

International travel is still in recovery, driving tailwinds for the industry and MOND, said the analyst.

Should economic conditions worsen, the company believes it can benefit from suppliers having excess capacity and wholesaling that capacity at lower rates, positioning it to benefit from potentially higher markups or increased volume as travelers look for more compelling prices, added the analyst.

Mondee expects to recover ~50% of its China business by the end of the year and believes it can fully recover by the end of 2024.

Most recently, the company has used M&A to expand its geographic footprint, which should help diversify its revenue from U.S. outbound flights.

The analyst also opined that adding more hotels, cruises, and events in addition to increasing utilization of its fintech and ancillary products should continue to drive take rate higher, into the double digits in the next few years.

The analyst is confident that the company's strategy of diversifying its revenue by mix and geography through organic and acquisitive opportunities leaves it well-positioned to continue gaining share.

The analyst looks forward to any commentary about any incremental benefits emerging from the launch of its new AI-powered platform.

Price Action: MOND shares are trading higher by 3.5% at $8.23 on the last check Wednesday.